What are maintenance fees? A complete guide

What are maintenance fees?

Maintenance fees are monthly payments made by each unit owner in a condominium corporation. These fees go toward the upkeep and operation of the condo’s shared spaces and services. Every condo owner contributes a portion, and that collective contribution helps keep the condo functional, clean, and safe.

Maintenance fees are mandated under Ontario's Condominium Act, and are part of the financial structure that supports your condo corporation. When you purchase a condo unit, you become a member of the corporation, and with that comes the responsibility to contribute to the condo's shared needs. The amount each owner pays is typically based on the size of their unit or lot and its "percentage of ownership" outlined in the condo declaration. That declaration is a legally binding document created when the condominium is registered.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their corporation’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What do maintenance fees cover?

There can be a wide range of services and expenses built into your monthly maintenance fees, depending on the condo and its amenities. But across most Ontario condos, fees generally support five core categories:

1. Day-to-day operations

   This includes everything required to keep the condo running smoothly, such as heating and lighting for common areas, garbage removal, landscaping, snow clearing, window washing, pest control, and cleaning for shared spaces like lobbies or hallways.
    

2. Repairs and upkeep

   Routine maintenance and small-scale repairs fall under this category. Whether it’s fixing a leaking pipe in a parking garage or maintaining the HVAC system, these ongoing costs are shared by all owners.
    

3. Staffing and professional services

   If your building has an on-site superintendent, concierge, security personnel, or cleaning staff, their wages may be covered through maintenance fees. It may also include professional services such as accountants, lawyers, engineers, and the condo management team who support the board and day-to-day operations.
    

4. Insurance for common areas

   This is not the same as your individual unit insurance. The condo corporation maintains insurance to protect the condo’s shared assets — like the structure itself, mechanical systems, and any common areas such as fitness rooms or reservable spaces. Coverage specifics can vary by building and insurer.
    

5. Reserve fund contributions

   Ontario condo corporations are typically required to maintain a reserve fund, which is used for major repair or replacement projects. Contributions to this fund help prepare for future capital expenses, such as replacing a roof, elevator, or plumbing system. A portion of your maintenance fee is set aside monthly for this purpose, based on a reserve study typically conducted at least every three years. In some cases, your maintenance fees may also include bulk utility costs, such as water or gas, depending on how your building is metered.

Do you have to pay maintenance fees?

Yes, maintenance fees are generally a legal obligation for condo unit owners in Ontario. By purchasing a condo, you agree to contribute to the shared costs of operating and maintaining the community.

Maintenance fees are used to manage critical functions, pay staff, complete repairs, and set money aside for future needs. Without these payments, the condo would not be able to meet its obligations or maintain its value.

For that reason, condo boards take payment enforcement seriously. Under Ontario’s Condominium Act, the corporation may have the right to collect unpaid fees and apply penalties. If fees remain unpaid, legal action can be taken, and the corporation can register a lien, which may ultimately lead to foreclosure proceedings in accordance with applicable laws.

That said, many condo management teams and condo boards work closely with residents to provide reminders, payment plans, or support if someone is struggling to keep up with fees.
 

How much are maintenance fees in Ontario?

On average, condo maintenance fees in Ontario typically range from $0.50 to $0.90 per square foot per month. This can vary widely based on several factors, including the size of the condo, its age, its amenities, and how costs are allocated:

• Building size and complexity: Larger condos with more units may benefit from economies of scale, but more complex structures with multiple elevators or mechanical systems might incur higher costs.
   
• Amenities: Pools, gyms, party rooms, rooftop terraces, guest suites, and concierge services can all contribute to higher monthly fees. The more amenities offered, the more it costs to maintain them.
   
• Utilities: Some condos include utilities like heat, water, and even cable in their maintenance fees. Others are individually metered. Shared utilities increase the fee, but can simplify billing.
   
• Reserve fund needs: Older condos often require larger contributions to their reserve funds, especially if significant repairs or replacements are anticipated in the coming years. Newer condos may have lower fees initially but might face increases as they age.
   
• Insurance premiums: Rising insurance costs across Ontario can impact maintenance fees. Larger or high-rise buildings often face more expensive premiums.

Fees are typically reviewed annually as part of the condo corporation’s budgeting process. Boards and condo managers usually prepare a proposed budget each year, and any changes to the monthly fees are based on that budget.
 

Why do maintenance fees go up?

It's normal for maintenance fees to increase over time. In most cases, these increases are linked to:

• Rising utility or insurance costs
   
• Inflationary pressure on wages and service contracts
   
• Additional contributions to the reserve fund based on updated reserve fund studies
   
• Planned capital projects, such as repaving a parking garage or replacing windows

Boards are often required to review the reserve fund and operating budget annually. If costs have risen or future expenses are expected, fee adjustments may be necessary. The goal is to keep the condo financially healthy while avoiding deficits or sudden special assessments.

An experienced condo management company can play a vital role in helping the board anticipate and manage these increases, offering strategies to control costs while maintaining service levels.
 

Can maintenance fees decrease?

While not as common, it is possible for fees to decrease in some situations. This might occur if:

• A large capital expense has been completed and the reserve fund is healthy
   
• Utility costs drop due to efficiency upgrades or renegotiated contracts
   
• Service contracts are competitively rebid, resulting in savings
   
• The condo becomes more energy efficient, resulting in lower operating costs

That said, fee reductions are typically modest and rare, as most condo corporations face ongoing cost pressures. In many cases, stable or gradually increasing fees may indicate proactive financial management.

At FirstService Residential, we work with condo corporations across Ontario to help boards manage their budgets, operate efficiently, and plan for the future. If you have questions about your maintenance fees or how they’re being used, reach out to our team today.